AACOG attempts to fix problems

AACOG Chair Kevin Wolff says of possible financial irregulari-ties, “It's a black eye, and that's one of the reasons why we're moving quickly. ... We want to clean this up as soon as possible.”

AACOG Chair Kevin Wolff says of possible financial irregulari-ties, “It's a black eye, and that's one of the reasons why we're moving quickly. ... We want to clean this up as soon as possible.”

Photo: Jerry Lara / San Antonio Express-News

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Photo: San Antonio Express-News

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The Alamo Area Council of Governments Sr. Director of Regional Services Joe Ramos, right, shakes hands with attorney Charles Zeck during a special executive committee meeting, Thursday, 6, 2014. Executive Director Dean Danos and Deputy Executive Director Mike Quinn were placed on paid administrative leave in late February after irregularities were found in a lease agreement with TriHM Foundation. The committee appointed three in top management to temporarily run the council. They are, Jeri Rainey-Hinojosa, CFO, Tim Trevino, Sr. Director of Strategic Planning and Ramos. less

The Alamo Area Council of Governments Sr. Director of Regional Services Joe Ramos, right, shakes hands with attorney Charles Zeck during a special executive committee meeting, Thursday, 6, 2014. Executive ... more

Photo: San Antonio Express-News

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Photo: San Antonio Express-News

AACOG attempts to fix problems

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SAN ANTONIO — The Alamo Area Council of Governments' executive committee on Thursday took action to address possible financial irregularities brought to light last month when two top executives were placed on administrative leave amid an internal investigation and probes by the Texas Rangers and San Antonio Police Department.

At question are relationships between former Executive Director Dean Danos, Deputy Executive Director Mike Quinn and the TriHM Foundation, which promised AACOG and another nonprofit about $168 million in grants that never materialized. TriHM also subleased space in June 2012 in AACOG's office building but never paid about $100,000 in rent or $50,000 in costs to renovate the space.

“This hurts the entire organization,” said AACOG Chair Kevin Wolff. “It's a black eye, and that's one of the reasons why we're moving quickly and the board is staying closely involved. We want to clean this up as soon as possible.”

The nine-member committee named three staffers to replace Danos and Quinn, who remain on leave with pay. Wolff said each will serve as a deputy director over the three major areas of AACOG. Jeri Rainey-Hinojosa, Timothy Treviño and Joe Ramos will oversee financial, external affairs and internal operations, respectively.

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Also, the committee opted to hire Peden Investigations to conduct a “fact-finding review” of AACOG's relationship with TriHM. Several committee members said that although possible criminal investigations are ongoing by other law enforcement agencies, those would not probe whether Danos and Quinn violated any internal procedures.

“We have been contacted by the Rangers and asked if we would work with them,” Wolff said. “They also said that they will share what they know with us.”

The probes stem from a relationship that began in 2012, when AACOG and the Alamo Area Development Corporation, a nonprofit that funnels money from the Texas Workforce Commission to local contractors, applied for a total of seven grants from TriHM and its executive director, Jackqueline Cooper. Then came the sublease and months of unpaid rent.

Apparently, Danos and Quinn figured that they could handle the TriHM issues on their own. According to Treviño, a review of agenda items from January 2012 to January 2014 revealed that neither AADC nor AACOG ever took any action on authorizations involving TriHM.

Even as recently as last week, Danos and Quinn told the AACOG board they expected Cooper to pay the rent and grant money by March 3.

Part of Peden's probe will delve into an AADC account officials said was established to receive the TriHM grant funds. A bank statement obtained through an open records request showed there were four deposits into the account in recent months and four wire transfers totaling about $27,000 to Cooper.

“The money was always 'on the way,' 'on the way,'” said Thomas Weaver, an AACOG member who also sits on the AADC board, which is scheduled to meet next week on several topics including TriHM.

Wolff said that although the account was an AADC account, it was solely to be used for grant money deposits and, by May 31, it and all other AACOG accounts must be moved from JPMorgan Chase to another bank that hasn't yet been selected. AADC will be able to continue to operate, Wolff said, but “we'll be keeping a closer eye on their money than we were before.”